Financial Reporting and Analysis

Time Warner

Home Warner
Turner Box Bros.
Office

Premium Home
Cable
Paid TV and Video,
Networks
OTT services Television

Source: 10-K (Annual Filling of Financial information: www.sec.gov

Consolidated Balance Sheet
 Ratio Analysis

Ratios 2015 2016 Remarks Interest

Company’s Ability to
Current Short- Term
1.56 1.389 meet it’s short term
Ratio Creditors
obligation

To check the long

term solvency of
Debt Company is financed
0.63 0.631 firm (comparison
Ratio mostly by debt
with rival firms and
market

Debt-to- Aggressive Level of risk

1.70 1.71
Equity leveraging practices (volatile Earnings)
Consolidated Statement of
Operations
Management Discussion and analysis
Overview:

Warner Turner
Bros 38%
43%

Home
Box
Office
19%

Time Warner Revenue

Distribution
 Management Discussion and analysis
Overview:

Revenue increased by 4% to $29.318 billion

Operating income went up by 10% to $7.547 billion

Net income attributable to Time Warner shareholder’s

went up by 2% to $3.926 billion

Purchased Debt via cash tender offers worth $3.0

billion

Significant impact by $1.008 billion in premiums paid

and cost incurred on debt redemptions
 Management Discussion and analysis
Overview:
AT&T and Time Warner Merger Agreement:
shareholder’s receiving $53.75 per share consideration

Major cost were : Restructuring, Asset Impairments

(comprising of programming impairments for Turner Inc.)

Revenue increase due to higher subscription and

advertising revenues

Selling and administrative expenses includes the recent

cost of merger with AT&T : $22 million

Change in effective tax rate from 30% in 2015 to 25%

2016 leading to change in income tax provisions
$70,000.00

$65,966
$63,848

$52,500.00

$41,629 $40,229
$35,000.00

$29,318 $28,118
$24,337 $23,619
$17,500.00

$0.00
Consolidated Statement of Cash Flows
 Management Discussion and analysis
Overview:

Change in effective tax rate due to a change in the

company’s tax method of accounting for film and Tv cost
amortisation. Also leading to increase in Cash from
Operating Activities

Basic net income per common share rose to $5.01 from

$4.69, indicating an effective growth in net revenues of all
three segments

Cash and Equivalent decreased by $616 million due to

recent premiums paid and cost incurred on debt
redemptions
 Made by:

Group
15:

Joe Melvin Raja - UH171092

Priyatma Rath - UH17107
Rashmi Ranjan - UH17111
Pranav Kumar - UH 17105

~Thank You

“Success occurs when opportunity meets preparation”